$40m fund for WA innovators

Western Australian innovators will have access to $40 million in venture capital seed funding following the establishment of Yuuwa Capital.

Innovation Minister, Senator Kim Carr, announced the appointment of the new WA fund manager under the Australian Government's successful Innovation Investment Fund.

The Innovation Investment Fund is a venture capital program that assists with the development of new fund managers in early stage venture capital investing.

It invests in private sector venture capital funds to assist small companies in the early stages of development to commercialise the outcomes of Australia's strong research and development capability.

Senator Carr said the Yuuwa Capital fund would specialise in investing in seed/start-up ventures with significant growth potential.

"Innovation drives productivity and competitiveness and the Innovation Investment Fund backs the best early stage innovators to get on with the job," he said.

"The global recession has choked off the supply of capital for young high-tech companies. That's why funds like this are so important in sustaining our innovators as we continue to recover from the effects of the downturn.

"It enables fund managers to address a clear market need for venture capital and enhanced management skills. In particular, the Yuuwa Capital team will seek innovative firms and new technological developments for investment support."

The Yuuwa Capital fund is made up of $20 million from the Commonwealth and $20 million raised from the private sector. It will work with research organisations, industry networks and Western Australian universities to generate investment opportunities.

The Yuuwa team has experience in early stage investing, has strong linkages to WA tertiary institutions and will provide access to management, operational and business development expertise.

The Yuuwa Capital fund will specialise in ventures with a primary focus on areas like:

- life sciences (including medical devices, pharmaceuticals, biotechnology); and

- information technology, media and communications.